Energy industry faces three challenges

The Australian energy market will have changed "beyond recognition" within a decade, EnergyAustralia says.

The system is morphing into one based on intermittent renewable energy while technology costs fall and companies are under increased pressure to act in the interests of consumers, EnergyAustralia managing director Catherine Tanna said on Wednesday.

"Within a decade, maybe less, the Australian energy market will have changed beyond recognition," she said.

"People want the clean energy transition, but many are struggling with rising power bills. Cost, emissions and reliability - it's the trilemma."

By 2040 coal is expected to generate about 14 per cent of the National Electricity Market's power, down from about 60 per cent now.

The figures from Bloomberg New Energy Finance's outlook puts renewable generation at nearly 78 per cent by 2040, up from one-quarter now.

The remaining eight per cent of generation in 2040 is predicted to come from gas.